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tv   [untitled]    November 24, 2014 10:30am-11:01am PST

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an egalitarian basis, but obvious talk about it more. >> i have one question. we talk about cars, what about bikes? i don't see anything from the presentation. >> we forgot to mention that. the redevelopment agreement, i believe is 110 is the minimum for what we have, but we are certainly going for far more than that. we don't have final numbers on that, but we are looking throughout the low grade parking levels about where we can put those throughout the building so there will be in excess of 110. >> that's a lot of bikes. >> yes. >> i was going to say, as a native san francisco citizen, i don't think i know anyone other than my son who rides a bike. >> i don't, but it's the trend. it's a trend. >> you ride a bike? >> there we go. >> at your own risk. >> you have to go with a trends if we can provide car
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parking spaces, maybe bike spaces. >> i'm just saying 110 is a hot. >> i second the motion with the parking space issue addressed or come up. >> at a later time be brought back to -- >> yeah, basically sending the parking issue to the negotiating table, but anyway -- >> with that amendment to his motion. >> i think that's fine. i think commissioner made a motion and i think -- >> and amended it. >> if we adopt the resolution it's with the commentary of the commission on parking issue i think that's fine.
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>> not commentary, but more of a direction to come back with -- >> if you want to give the flexibility to staff my suggestion is you pass the original resolution. i don't think there needs to be an amendment. >> thank you for the clarification. motion and seconded to approve the resolution as written. please call the role. >> commission members, please announce your vote when i call your name. the vote is 3 is and one absent. >> thank you. please call the next item. >> the next order of business is item 5e, status report on construction work force program. discussion.
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madam director. >> yes, pardon me. thank you madam secretary and commissioners and thank you to the members of the public for continuing to join us. this is a quarterly stalt tus update. you have a broad range of equal opportunity programs. today's presentation is really the second that the commission has seen thus far on -- we're focusing today on the job creation programs, both on professional services sides, as well as the construction employment piece so with that i'd like to ask raymond lee, who's our contract compliance supervisor to present this update. >> good afternoon. raymond lee, i'm contract compliance supervisor. thank you director and good afternoon commissioners. what i have is just a brief powerpoint presentation to provide some information
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about our small business and work force programs. what i'd like to get accomplished today is to provide you a quarterly update in terms of the sbe performance, along with projects to date. also provide to you an update on the work force performance, quarterly and also project to date and also give you some landscape changes that's happening within the industry.
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so just a point of clarification in that respect. i do want to say this as well, for future commission reports, it will fall within the fiscal quarters so that it will get in line.
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i think i was ambitious in wanting to provide a report to you when i first joined ocii and it broke off in that respect. >> we were anxious to hear it as well. so first a little bit about our small business program. we've had ocii of course through the redevelopment agency has always had a strong commitment towards small business, first with the minority women business program and in 2004 with the change over to the small business program. the objective has always been of course, to offer small disadvantaged businesses an opportunity to participate in ocii assisted projects. what that means are not only direct contracts at ocii awards, but also contracts that are assisted in the sense of design development agreements with private developers, opas, the owner participation agreement with developers so what's unique
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is that there is a oversight of private development and encouraging private developers in using local businesses is what's unique about this particular program. we go through a extensive effort of working with developers in looking at good faith efforts and what that means is working with the developer to break out components of work and make it available to small businesses, outreaching to small businesses as well. and then certainly engaging with the developers in looking at deciding who it is they eventually shrek as part of the teams. before i get into the performance in the quarter i want to step become and talk about the definition of a small business as you
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probably know, the ocii no longer certifies small businesses. what we do is accept small businesses that are certified by other governmental entities and the reason for that is certainly for staff and resource constraints, but we accept other governmental entities in the sense that our business has already gone through a verification process of who is actually indeed the owner of the firm and in control of the firm so what's left to be decided on is the size revenue or the definition of a small business in terms of size. we accept other governmental entity certifications, but we verify the size of a business to ensure it meets or thresholds, and the thresholds shown on the screen are professional services at two million, supplies at 7 million and professional services at 14 million.
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cmd has varying levels of standards, the disadvantaged business program is an example with the federal agency has different standards defined by sb and so forth. but what's common with many of the certification programs, again, is to verify the bona fide firms and we mix up regarding revenues. so during the past four months from june to september we've awarded eight contracts of projects, three of which are in infrastructure for 4 million. one stand alone housing, predominantly the projects, the categories i mentioned are in design professional services and finally the design contract as well. what we have done is awarded 19, we being the contracting
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community developers and ten of that or really close to 11 million of that has gone to sbes, roughly at about 57.2%. i'd like to say that i think we've done relatively well this past quarter on a small business side and what i have provided here is a break out between the type of work between professional services, which is shown at roughly $9 million of sbe, representing 60.5%. for construction and supplies we broke that down as well. that is about 2 million of sbe dollars so less than 50%. provided the slide in the sense that there's often a challenge with respect to getting construction contractors, small business contractors on our projects
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and you'll see throughout the remainder of the presentation that's the case, it's always a challenge to get small construction contractors on or projects for a number of reasons. one is that the entry for construction contractors is much higher than professional services. there's not equipment that's needed, there's not any type of investments, capital investments that's needed on a professional service side as opposed to construction site and also just the cost of doing business in terms of space, you know, where can you park a truck or a work truck or equipment here in san francisco. it's, i'm sure a challenge to a lot of small businesses.
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out of the 11 million that's been awarded the small businesses, roughly 75% of that went to minority owned business or 39% of the total contract awards or about 68% of awards went to minority firms and i provided a break down in that sense.
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one of them -- with this particular slide is aggregated all of the projects that were active and in progress from the prior reporting period and included the projects that were awarded this particular reporting period and that aggregation is what's shown on a the screen here. what you see essentially is a slight improvement overall in terms of sbe per formans. performance.
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construction and supplies, again, bit of a challenge showing a slight improvement showing, 0.5% and overall, roughly about 0.33 or 1/3 improvement in that sense. i do want to say this, construction is an area that we pay a lot of attention because we recognize the challenge that's in place within the construction industry. i am happy to report that there has been some improvement in that respect, particularly with contracts awarded in october. the shipyard, as an example, the developer was successful in getting really small businesses to participate as prime contractors, either as a joint venture or as sick
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significant contractors so what i've provided here is a look ahead for october and you see that there has been some -- what i would consider to be some drastic improvement in the construction side of it; going from overall 32 pk to 34%. you may say to yourself that's minor, but you have to look at the magnitude. we're talking about $1.2 billion in total aggregate so that 2% translates to quite a bit. stepping aside and talking about the work force program. ocii has a very aggressive, intentionally set overall goal of 50% for local work force hires. they're determined on a crack
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by contract basis, in the sentence that there may be variances that can be looked at, but i have to say that on a overall basis, we've established 50% and communicated that to the community. there is a priority that's given to local residents and those are reflective within what we'd determine to be project areas and the high priority is given to the hunters bay viewpoint area. we do currently have three project major areas, hunters point, shipyard candle stick point, mission bay and transbay, but there's other projects in outlying areas from development that's shown in the reports as well. i want to acknowledge in march 4 of 2014 we did -- ocii
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entered into with oewd. overall we look at -- what is it? in the sense of priorities being given to bay view hunters point, but i want to also talk a little bit about the alice griffith mou. there is a separate priority list for alice griffith projects an i just want to, for the sake of the benefit of those in the audience and for yourselves, just highlight the priority list, don't take that quite as seriously in terms of
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offering opportunities for local community residents. for alice griffith projects the priority is for alice griffith residents, particularly we look within the zip code of 94134 and 94107. and then on a fourth basis we look al san francisco housing residents in general. lower than that particular point we look at but residents in the area. on a six level basis we look at outlying bay view area residents, those being and then we look at residents in other redevelopment residents and then san francisco residents in general.
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with that said on an aggregate basis for work force during the quarter there were about 221,000 work hours that was performed by local san francisco residents. that constitutes about 26.5% of total work hours performed on our various projects. below that is the break down between particular redevelopment areas, bay view hunters point being 41%, hunters point shipyard at 43% and then with outlying areas of mission bay and transbay sitting at about 22 to 25% and as i mentioned we still have records on other types of projects in older redevelopment areas.
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i want to say that approximately 1/3 of the work in the bay view hunters point area are performed by bay view hunters point residents, those residing in 92134, and 107. something that wez we've been tracking and in future reports we'll provide this information in terms of alice griffith is the project that took place and is currently taking place. we have shown a participation rate of about 17% of alice griffith on that infrastructure project. what that means is for alice griffith residents so there's four that are working on alice griffith infrastructure work an ten other hunters point residents so they have been
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performing about 1/3 of the work that's asked of them in that particular area. i also want to say there's been -- as i mentioned earlier, recent construction activity in okay that has brought some good news with respect to sbe. i think in the work force area we'll see an improve. ment in the construction work force as well. with recent contracts awarded as an example for candle stick stadium, we held a class on november 3 for asbestos abatement. there were 20 new students into that academy. 16 of those 20 were residents of alice griffith. two were for the larger hunter bay view area and two from other san francisco areas. it showed promise in that respect. this certification class was
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asbestos abatement was a one week class and open although only ten students completed the project it's still promising. of the ten, that did complete the class. as i mentioned, my received the certifications. eight are working on candle stick, one will be working in december. of the nine that did get their certifications, three were directly alice griffith residents, five were from the district ten area at large and then one from district six so it shows promise in that respect. in terms of getting local workers on to local projects. here's an aggregation of the local work force hours. when i say aggregation it's
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an aggregation of all active in progress projects that we last reported and then the new contract bs that came into play so on an aggregated basis we're looking at about 20% of san francisco citizens and i've provided details of a break down of bay view hunters point, the shipyard, mission bay, transbay and others. for the bay view hunters point we're at 52% so it was lower this past quarter. bay view hunters point at 44.9. again, we -- i'm sorry, it's right under here so 44.9 so for hunters point shipyard it's at 44.9%. again, it's showing promise.
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we would expect that in the report that i'll have to bump up. mission bay, transbay, those are more of a challenge, i would say at 26 and 24% and in other areas at 25%. our goal is aggressive, it's at 50%. i want to say the city's local mandatory hiring program, the construction work force program, they goal is currently at 30% so from some of the other areas you've seen within mission bay area and transbay we're in that ballpark. what's shown here is a break out by each of the redevelopment areas, with the first bar being those representing from the last
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reporting and then the red bar showing the september 30 period so you see that in each of the cases with the exception of transbay where there was some improvement, it's been a challenge getting work force in a consistent basis. again, i would expect that within the hunters point shipyard we'll see improvements, but i think overall work force has been the challenge in this particular sense from what we've seen within the construction work force it's been determined that [inaudible] employment workers are essentially working. they have their ability to choose the type of work they want to perform and it's considered employment in that respect . >> sounds like the tech
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industry. there's a pool of local residents and that's great news. it's great news in a sense that there is employment and people are working so i think these programs are achieving their objectives, i think on an overall basis, but addressing some of the work force challenges, we are facing a limited local resident worker pool as evidenced by the interest in the construction field. there's been a decrease in the completion rates of apprenticeship programs. of the 63 local hiring projects and those range from 20 to 30% goal over span of the life of the prap. of the 63 local hiring projects, roughly 54% of it
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are currently in some form of corrective action. the city is facing similar challenges in a sense that the 160 that they're currently overseeing with local hiring requirements, about 39% of that is in some level of deficiency. so a lot has been talked about, increasing the pineline of potential workers in the construction industry. there are barriers to the construction industry that has to be overcome. the -- from what i've heard within the industry, improving the high school graduation rates the important because a high school diploma is required in some of the construction fields in terms of reading plans, things of that nature. other areas of challenges is driver's licenses and when
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you talk about cars it is important for a worker to be able to get to a construction site and to stay employed in that respect. in terms of some of the corrective measures we're looking at, certainly we'll continue to monitor our contractors in terms of their performance and we'll be working with the city and contractors in providing referrals to the extent they can be made. and wherever possible we'll assist the industry in building this pipeline if at all possible, making referrals of interested folks we come across to enter the city building academy of increasing that pipeline. lastly i wanted to provide you a flavor of what's happening out in the industry overall and the changes what i would consider to be landscape changes.
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the city due to the contract monitoring division is looking at improvements to the chapter b ordinance. i believe it was just reported back on june 30 where a report has been issued, there were seven findings with a multitude of recommendations, some of those that we have looked and heard addresses mandatory goals for city contracts and then a creation of an emerging micro lbe classification. we're not certain at what stage the monitoring division is at but we'll certainly follow with them to monitor the development of 14b. also some changes on the state level, sb 854 took effect on june 20, 2015 but that doesn't affect us yet.
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what this bill does is it establishes a public works registration system so any contractor that wants to perform a public works has to be registered as a public works contractor. i believe that was monetarily driven by the state in a sense of generating revenues to oversee the labor compliance program, but nevertheless out has passed. it has an impact on ocii i effective january 1, 2015, we are now required to include in our contract revisions this particular contract that they must be rej sterd. registered. we have to so it's important so that -- those take effect on january 1, 2015 for our subs as far as an impact. i have to say this pertains

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